Shipbuilder Rongsheng tumbled 6.7 percent to HK$1.40 at the
close in Hong Kong trading, the lowest level since Oct. 19, and
real estate developer Glorious fell 3.2 percent, the most in a
month, to HK$1.20.

Zhang, the founder and biggest shareholder in both
businesses, quit their boards about five weeks after another
company he controlled agreed to pay $14 million to resolve U.S.
inside-trading claims. His departure is unrelated to that, iPR
Ogilvy in Hong Kong, which handles his public relations, said in
an e-mailed reply to questions from Bloomberg News.

The billionaire was leaving “to devote more time to his
personal endeavors” and there were no disagreements with the
boards, the two companies said in statements yesterday. Zhang
told investors he won’t sell any Glorious shares for at least a
year and later declined to comment on Rongsheng stock, according
to iPR Ogilvy.

“Zhang’s resignation came as a surprise to the market,”
said Lawrence Li, a Shanghai-based analyst at UOB-Kay Hian
Holdings Ltd., who rates Rongsheng sell. “This may add concerns
about the listed companies’ outlook in short term.”

Billionaire’s Worth

The Hang Seng Index fell 0.1 percent. Rongsheng has plunged
35 percent this year and Glorious has lost 12 percent, compared
with a 19 percent gain for the city’s benchmark index.

Zhang is worth $1.4 billion, according to Bloomberg
Billionaires Index. He owns almost 48 percent of Rongsheng and
more than 68 percent of Glorious.

Rongsheng Chief Executive Officer Chen Qiang replaced Zhang
as chairman, the Shanghai-based shipbuilder said in its
statement. At Glorious, Cheng Lixiong stepped down as CEO to
become chairman. Liu Ning succeeded Cheng as CEO.

Well Advantage Ltd., controlled by Zhang, paid the U.S.
settlement after an investigation into $7 million of profit made
from trades ahead of Cnooc Ltd.’s announcement of a bid for
Nexen Inc. The company neither admitted nor denied wrongdoing,
according to a Securities and Exchange Commission statement.

Rongsheng said that Zhang himself suggested leaving. The
move showed his “confidence in the management team,” it said
in an e-mailed reply to Bloomberg News questions. Zhang didn’t
have an executive role. His father, Zhang Dehuang, stepped down
as vice chairman of the shipbuilder, according to the company’s
statement.

“We respect his decision to focus on his own personal
business,” said Doris Chung, a spokeswoman for Hong Kong-based
Glorious.